MTD - Who will be affected?

  • If you are trading - but not through a limited company or partnership, (ie you are a sole Trader)

    OR

  • If you are renting property

AND

  • the total of both gross incomes is:

    • more than £50,000 in 2024/25 (you are in MTD form 6th April 2026)

    • more than £30,000 in 2025/26 (you are in MTD from 6th April 2027)

    • more than £20,000 in 2026/27) (you are in MTD from 6th April 2028)

What is MTD?

Making Tax Digital (MTD) is the Government’s incentive to, as it sounds, move away from paper filings and enforce a “digital only” way of working for Income Tax Self Assessment.

  • To file “Digital Records,” you will need to have systems that capture:

    • Income & costs - as well as what types of incomes & what types of costs

    • The dates of the transactions

  • Filings:

    • Instead of one Tax Return, you’ll need to file five (yes FIVE) online returns to HMRC

    • These have to go directly from your system to HMRC’s system

How Naked Accounting Can Help you

Many of our clients have already benefited from our help when it comes to MTD. This includes contractors, sole traders and landlords.

We’ll be able to set you up with the best and easiest systems (and hold your hand all the way through the process). Our preferred systems include:

  • Dext Solo

  • Hammock

  • Xero

    We’re a cloud-first firm and always have been. Frankly, we could have done MTD filings for our clients more than a decade ago!

If you’d like help from genuine experts and specialists in MTD, please get in touch with our team!